Youth unemployment spreads

21 mei 2012 - Unemployment among young people has climbed by 26.5% between 2008 and 2011, a new UN labor report states. Worldwide, 75 million aged 15-24 are without a job. What consequences does an emerging “lost generation” have for economy and society? What is the role of higher education?

The International Labour Organization (ILO) is set to publish a report indicating the emergence of a "lost generation" due to a massive increase in youth unemployment. In the EU and other industrialized countries, this number increased by 26.5% between 2008 and 2011. For 2012, the share of young people (aged 15-24) without a job is expected to stagnate around an average of 18.0% in developed economies.

Especially in 2008-2009, unemployment rose sharply following the financial crisis. Worldwide, 75 million people aged 15-24 are without a job, 4 million more than in 2007. The report authors forecast that it will take at least until 2016 before unemployment decreases to its pre-crisis level.

Austerity not the reason

Within the EU, Greece and Spain (51%) exhibit particularly high youth unemployment. Marco Annunziata, economist from General Electric, recently argued on ScienceGuide that this has little to do with austerity measures, but a failing education system. "Education systems are plagued by falling standards and a growing misalignment with the demand for skills," Annunziata stated.

What massive youth unemployment means for economy and society was explained by cross-border expert Vangelis Tsiligiris. He warned that the consequences of the Eurocrisis and a potential exit of Greece from the Eurozone could lead to a permanent brain drain.